Intrinsic values of companies increase slowly over time with good, solid management. Many of these companies you know and love; a host of others – small, international, et al – are quietly making gains every year.
History tells us that the value of these companies rises on average at a rate above and below 10% as measured by stock price depending on the company’s size.
It’s a bargain, so why not get in line and buy while the prices are low?
Actually, you’ve already done this because it’s exactly what we do when my team at Matson Money rebalances your portfolio. We are taking the relative gains in fixed income (bonds) and purchasing the declining categories (stocks in the US, for example, have been lower recently).
Academic rebalancing on these dips is a buy-low-sell-high strategy. When stocks eventually rebound, you will own more shares.
This is prudent and should give you peace of mind about your portfolio. No Market Timing required.
Join us on April 22nd when we’ll look at more reasons for loving the Bear Markets. Even the little ones.